lexus

Lexus, headquartered in Nagoya and introduced to the North American market in 1989, is a luxury division of Toyota Motor Corporation. The car company boasts meticulous craftsmanship, relentless design, leading technology, and customer care. With a team of several highly experienced and skilled professionals with more than 25 years of experience, Lexus offers various models of cars to fit the needs of their target market. However, with its operational centers located in Belgium, as well as assembly plant in Ontario, the quality control of Lexus is declining. Lexus’ high pricing as a luxurious car product makes it less competitive in the local North American market with drivers of an average income. However, with the influx of Asian population in the country, a Japanese car like Lexus that targets Asian market offers promising business opportunities. On the other hand, the reliance on the Asian market could be a potential threat, as Lexus may lose their market shares in Europe and other countries. The global economic downturn is another threat that Lexus confronts as consumers’ purchasing power diminishes with the loss of employment and personal assets. Considering the proven expansion of domestic market to global market for two decades, Lexus remains one of the favourable choices among upper-class North American consumers who demand luxury and style. Lexus’ designs and impeccable quality attracts many, while its high pricing is an inevitable barrier to mass consumption. In the years to come, Lexus has to compromise with the changing economic climate to affect rewarding profit margins. Increased competition from luxury automobile brands including BMW, Mercedes Benz, and Audi are a growing concern and challenge for Lexus. The following Competitor Analysis Table highlights the Strategies, Strengths, and Weaknesses of Lexus’ competitors as they find ways to capture more market share in the luxury automotive industry.